January 04, Colombo (LNW): Sri Lanka’s coconut-based exports have crossed the US$ 1 billion mark in 2025 and are expected to finish the year at close to US$ 1.2 billion, underscoring a dramatic surge from the previous year and signalling a turning point for the island’s coconut industry.
The sector recorded earnings of about US$ 800 million in 2024, making the latest performance a year-on-year increase of more than 40 per cent. Officials describe this as a significant milestone that confirms coconuts as one of the country’s most promising export commodities.
Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe said the industry has rapidly evolved into a strategic pillar of Sri Lanka’s export economy. He expressed optimism that continued policy reforms, productivity gains and access to new international markets could lift coconut-based exports to as much as US$ 2.5 billion by 2030.
Despite the strong growth, authorities acknowledge that limited nut productivity remains the sector’s biggest bottleneck. In response, the Government launched a series of structural measures in 2025 aimed at improving yields and expanding the extent of cultivated land, though officials caution that the benefits of these interventions will take time to materialise.
To address immediate pressures, policymakers focused on encouraging changes in domestic consumption patterns. This included promoting more efficient household use of coconuts, introducing substitute products for everyday needs and encouraging simple practices to reduce wastage at the consumer level.
In parallel, exporters were permitted to import coconut milk and kernel-based products strictly for re-export, a move that helped maintain export supply chains without disrupting the local market. Although only small volumes were brought in, the decision was credited with preventing shortages while preserving the industry’s export momentum.
Authorities say the achievement reflects close cooperation between government institutions, industry stakeholders and the public. With productivity reforms continuing and international demand for coconut-based products on the rise, Sri Lanka’s coconut sector is now firmly positioned as a long-term driver of export growth, with ambitious targets set for the years ahead.
